Britain’s economy recovery is still fragile and facing the risk of a double-dip recession due to worsening eurozone debt crisis and financial market uncertainties, the British Chambers of Commerce (BCC) warned.
The BCC emphasized that it would be not be sensible to ignore the threat of a double-dip recession, though the business group revised it GDP growth for 2010 upward to 1.3 per cent as compared with its March prediction of 1 per cent.
Commenting on the topic, BCC chief economist David Kern said, "The crisis in the euro zone and turmoil in the global financial markets threaten to dampen the U. K.'s growth prospects."
The BCC expressed more concerns about growth in 2011 and lowered its forecast from 2.1 per cent to 2 per cent. It may be noted here that the UK economy contracted 4.9 per cent last year.
The group expects the Bank of England to raise its key interest rates from record low of 0.5 per cent to 1 per cent by the end of current year.
The BCC also urged the Conservative-Liberal Democrats coalition Government to avoid new business taxes and tougher measures such as huge spending cuts as they could hurt enterprise and entrepreneurship.
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